World’s Largest Crypto Exchange Sued By US Regulators

The Commodity Futures Trading Commission (CFTC) sued Binance, the world’s largest cryptocurrency exchange, and its CEO Changpeng Zhao on Monday for allegedly breaking trading and derivatives rules.

The derivatives regulator said Binance neglected its responsibility to properly register with the CFTC, according to the filing. The agency has been investigating Binance since at least 2021 over whether it has allowed Americans to trade crypto derivatives, as the CFTC rules typically obligate companies to register if they do.

Binance is based in the Cayman Islands and in December 2022, it experienced mass withdrawals following the FTX cryptocurrency exchange going bankrupt that November. At this time, traders were worried about Binance after an audit of its funds created confusion about the company’s finances, according to The Wall Street Journal.

When Binance released its audit, the firm sought to assuage customers about the security of their holding after FTX’s collapse, according to the WSJ.

Since 2018, the crypto giant and its CEO have been under suspicion by federal regulators, according to Reuters, as the exchange soared in popularity for criminals to covertly transfer money.

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact [email protected]